FASB ASC 13-4 Impact of sale-leaseback (Should be based on the new accounting standard on lease)

Accounting for sale-leaseback transactions in accordance with FASB ASC guidance can result in a difference between the timing of income and expense recognition required by that subtopics and the timing of income and expense recognition for rate-making process. How should companies account for that difference?

Debate 11-2 Fair value option

SFAS No. 159 (FASB ASC 825) allows companies to value financial liabilities at fair value. If not elected, financial liabilities will continue to be accounted for under the historical cost method.

A. Present arguments against measuring liabilities at fair value